What was the total amount of royalties Dog Haus received in 2023?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
provides a practical expedient to Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers, that permits franchisors that are not public entities to account for preopening services provided to a franchisee as distinct from the franchise license if the services are consistent with those included in a predefined list within ASU 2021-02. Additionally, ASU 2021-02 provides an accounting policy election to recognize pre-opening services as a single performance obligation, which the Company has elected.
Notes to Financial Statements December 31, 2024, 2023 and 2022
Franchise Fees, Royalty Revenue and Development Fees: Franchise fees are nonrefundable and are generally due upon signing of t
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the company reports income from marketing, creative, and technology fees, which franchisees pay at a rate of 2% of net sales. These fees are earmarked for specific advertising and promotional activities for Dog Haus restaurants. The document states that for the year ending December 31, 2023, Dog Haus's marketing fee income totaled $1,213,271.
It is important to note that these figures represent only the marketing, creative, and technology fees, and not necessarily the total royalties Dog Haus collected. The FDD excerpt does not explicitly detail other potential royalty streams or fees that Dog Haus might collect from its franchisees.
A prospective franchisee should clarify with Dog Haus what other fees constitute royalties and request a comprehensive breakdown of all royalty income received by Dog Haus in 2023 to fully understand the franchisor's revenue streams and associated costs.